CLA-2-84:OT:RR:NC:N1 102
Akira Fuchinogawa
FUJI Seisakusho Co., Ltd
3108 Kashikimura IGA 5180123 Japan
RE: The tariff classification of an endcap
Dear Mr. Fuchinogawa:
In your letter dated March 27, 2024, you requested a tariff classification ruling. A sample was submitted with your request and is being returned to you.
The item under considerations is an endcap, item number PCR45EX-D(C). The circular shaped endcap is a housed bearing assembly comprised of a bushing with a hexagonal shaped center bore, a radial deep groove ball bearing, and a housing. In use, the endcap is mounted to the end of a roller to facilitate the rotation of a hexagonal shaft.
In your letter, you suggest the endcap is classified within heading 8309, Harmonized Tariff Schedule of the United States (HTSUS), which provides for covers stoppers, caps, and lids that are used for "corking or capsuling drums, barrels, bottles, etc., or for sealing cases or other packages. As it appears that the endcap completes the end of a conveyor roller, this item would not be akin to the exemplars of 8309. Also, similar endcaps have been classified as housed bearings within heading 8483. See New York rulings E83041 (July 28, 1999), E83643 (July 28,1999) and N233837 (October 04, 2012).
Accordingly, the applicable subheading for the endcap, item number PCR45EX-D(C) will be 8483.20.8040, HTSUS, which provides for Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof: Housed bearings, incorporating ball or roller bearings: Other: Incorporating ball bearings. The rate of duty will be 4.5 percent ad valorem.
You also inquire about the origin of the endcap regarding marking and for 301 Trade Remedies. You explain that the final assembly of endcap occurs in Japan and begins by automatically inserting a Japanese bushing into a Chinese manufactured ball bearing. Next, the Chinese ball bearing is caulked into the Japanese manufactured housing. The completed end cap is then subject to visual and rotational inspections.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
The country of origin is defined in 19 CFR 134.1(b) as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the 'country of origin' within the meaning of this part.
The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993).
In examining the final assembly operations, this office believes the assembly processes described above are not complex enough to render a substantial transformation. Instead, we rely on the origin of the ball bearing, which is the essence of the endcap, to determine the origin of the endcap. It is the anti-friction mechanism that facilitates the rotation of the shaft, and the bushing and housing support the operation of the bearing. As the origin of the ball bearing is China, the country of origin of the endcap is China for marking purposes and the purpose of Section 301 Trade Remedies.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8483.20.8040, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8483.20.8040, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division